Hyderabad emerges as India’s fast-growing hyperscale data centre hub

Hyderabad has emerged as a major data centre destination, with live capacity more than doubling since 2022 and a 1.9 GW project pipeline. Investments by Microsoft, AWS and Oracle are accelerating the city's transformation into a leading hyperscale and AI infrastructure hub.

Hyderabad: Hyderabad has emerged as one of India’s fastest-growing data centre markets, transitioning from a secondary IT/ITeS-led node into a strategic hyperscale and AI infrastructure hub.

The city’s live capacity has more than doubled from 60.9 MW in 2022 to 151.4 MW by end-2025. In addition, the city’s pipeline of committed and early-stage projects aggregating 1.9 GW is second only to Mumbai, driven by strong operator preference for large, campus-scale deployments, according to Knight Frank India’s latest report, India Data Centre Market update 2025: Tracking Capacity, Demand and Supply Pipeline.

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Microsoft is launching its India South Central data centre region in Hyderabad in 2026, while AWS operates three availability zones in the city, anchoring hyperscale demand. AWS holds 46 per cent market share of live IT capacity in the city.

Oracle operates its cloud services in Hyderabad via a colocation-based deployment but has announced plans to launch a data centre in Hyderabad to expand its data centre capacity in India. This presence of global cloud players reinforces Hyderabad’s emergence as a credible hyperscale hub.

The demand profile in Hyderabad has also shifted. While historically driven by IT/ITeS, the city witnessed record-high take-up of 19.2 MW in 2024, signalling a shift toward hyperscale dominance. While absorption moderated in 2025, vacancy rates averaged 23 per cent, indicating the market is in a build-out phase as it gears up for AI-driven demand.